Corporate Environmental Management - Assignment Example

?Question The collaborative project with McDonald’s enabled EDF to produce a broader change in the behavior of markets. McDonald’s is a large company possessing the leading market share in its industry. Therefore when it implemented an environmental strategy, the rest of the industry implemented the same strategy in order to keep pace with change. Given the market leadership position possessed by McDonald’s, the company had the influence with which to affect market behavior regarding environmental issues. Therefore when EDF successfully completed the project, it meant that there would be a market-wide effect on the knowledge base about solving environmental problems. Although there has been increasing awareness about the connections between business and the environment, there is a gap in the knowledge base about how to best address the environmental issues that affect business performance. The project with McDonald’s contributed to this knowledge base by providing an example of how best to manage resources in order to minimize environmental pollution. The collaborative project was highly publicized so that EDF’s work received numerous accolades. Because the research project received widespread attention, it enhanced industry-wide awareness regarding EDF’s corporate environmental agenda. It had a positive effect on the public perception of EDF so that the company could continue to pursue its agenda of promoting the use of economics in the analysis of environmental problems. EDF specialized in advocating the use of market based incentive systems to improve the environment. The joint project with McDonald’s enabled EDF to capitalize upon this expertise. EDF was an environmental group that possessed a combination of economic, scientific and legal expertise enabling the company to address environmental concerns effectively. The focus of the collaborative project with McDonald’s was to reduce the restaurant’s use of material and generation of solid waste. It involved economic analysis in which the company possessed expertise. Therefore the project was concluded successfully and received positive press coverage. By collaborating with large corporations, EDF would be able to keep pace with the change that is taking place in the industry. In order to maintain the effectiveness of its program, the company would have to keep pace with the changes in market drivers and regulatory drivers. This objective was met when EDF participated in the collaborative project with McDonald’s. The environmental group specialized in the use of economic analysis to address environmental problems. When McDonald’s implemented the plan, it improved the effectiveness in supplier chain management. By implementing new management mechanisms and accountability procedures, McDonald’s was able to improve business performance. Because the project was highly publicized, it raised awareness about the connections between business performance and environmental issues. Although the project focused upon materials improvement and waste reduction opportunities, it raised awareness about the effectiveness of using market-based incentive systems to address environmental problems. Since this was the area of EDF’s specialization, the collaborative project contributed to the company’s ability to affect market-based behavior. As a result the company gained reputation that would interest other companies to hire their expertise as well. Therefore from EDF’s perspective the collaborative project with McDonald’s was a success. Question 2 The successful completion of the collaborative project with McDonald’s enabled EDF to promote the use of economic analysis in addressing the connections between business performance and environmental issues. Therefore the environmental group should follow up the McDonald’s project by developing innovative solutions for environmental dilemmas. In setting the strategic focus, EDF would have to consider several factors. One of these factors was maintaining the diversity of approaches. After the conclusion of the McDonald’s project, several large corporations had contacted EDF. However EDF’s employees were unwilling to operate as an environmental consulting firm. They did not want to operate EDF as a private sector business that set its strategic focus according to market pressures. Given this orientation, EDF’s management would have to decide whether to continue to work with the large organizations. If the company decided to work with large organizations, then the priority would change from the bottom up approach to market pressures and as a result fund-raising considerations would start to affect project selection (Hill and Jones, 2007). In setting the follow-up plan, the management would have to consider the issue of public perception. The work with McDonald’s had received positive press coverage but it had also forced EDF’s other projects out of the limelight. Therefore if the company wanted to receive positive press coverage, then the best plan would be to collaborate with large organizations. However this meant that the company would not be able to maintain the same diversity of approaches. As mentioned in the case, the diversity of approaches is the company’s strength. However collaboration with industry leaders also generated high pay-offs. Therefore in setting a future direction after McDonald’s project, the management would have to balance the options between generating positive press coverage and maintaining the diversity of approaches. It is clear that the company’s core competencies lay in the use of scientific approaches to combating environmental issues. EDF specialized in applying economic analysis to allocating resources among environmental problems and among tactical approaches. This specialization could be capitalized upon either to collaborate with the large organizations or to further develop a framework that would maintain the organizational and cultural strengths. Given EDF’s strategic orientation over the last two decades, the company should focus upon those projects which might attract less public attention but which will enable the company to capitalize upon its combination of economic, scientific and legal expertise. This will ensure that the company is able to maintain the bottom-up approach which has ensured the company’s success over the last two decades. This would also maintain the motivation of the employees since they preferred to work on different projects that gave them the opportunity to apply their diversified knowledge about incorporating scientific analysis into addressing environmental problems. Therefore EDF should follow up the McDonald’s project by focusing on those projects which would enable EDF’s employees to maintain the ‘bottom-up’ approach to priority setting. Question 3 EDF has set a widely diversified agenda for itself. The environmental issues range from the greenhouse effect and wildlife and habitat to ozone depletion and saving the rainforests. Other issues include acid rain, Antarctica, toxics, water and recycling. As a result the company will be focusing on diverse issues. This will enable the company staff to apply their scientific, economic and legal expertise to addressing a wide range of environmental issues. Therefore the employees will be able to capitalize upon their core competencies. This will enable the company to maintain the strategic orientation that has ensured its success over the last two decades. EDF has already worked on a number of projects in the areas highlighted in the agenda. Therefore the company has the expertise with which to continue to work in the chosen areas. As a result the company’s strategic focus will be aligned to the changes that are taking place in the external environment. Issues such as the greenhouse effect are increasingly on the public consciousness. Therefore by focusing upon these issues, EDF will be able to not only address the issue of public perception but also maintain the organizational and cultural strengths (Jeston and Nelis, 2008). The agenda that EDF has set for itself has the orientation of purpose that will enable the company to work with both large organizations and on those projects which receive less press coverage but which are more aligned to the strategic focus of the company. Because large corporations are already contacting EDF, the environmental group has the organizational capital with which to facilitate widespread change in the market. This means that the companies which will be collaborating with EDF will be able to manage change not only within their own organizational structures but also produce industry-wide changes. EDF specializes in the use of market-based incentive systems to address the environmental problems. Therefore the action plans developed by EDF will enable its client organizations to develop competitive edges. However given the diversity of issues that EDF has set in the agenda, the environmental group can maintain its independence from market pressures. As a result the staff will be able to maintain a diversified portfolio of projects which will enable them to capitalize upon the company’s expertise of scientific, economic and legal analysis. This has been the company’s strategic orientation in the last two decades. Although the collaborative project with McDonald’s has been a success from EDF’s perspective, it has also raised some concern that the company might be putting business issues ahead of environmental issues. Addressing widely diversified issues as the company has set for itself in its agenda will enable the company to allocate resources in a manner which will ensure its independence from market pressures. As a result implementing the agenda means that the company will be able to work in a wide variety of industries to reduce pollution. In implementing this agenda, EDF will be able to work on environmental initiatives which are not only based upon compliance but also have the purpose of sustainable development. The company has set issues that will increasingly become important. Addressing the issues also requires scientific, economic and legal expertise which EDF possesses. Therefore these are the right issues. Question 4 EDF can continue to grow as fast as it has in the last two decades by maintaining a diversity of approaches. The ‘bottom-up’ approach to priority setting should also be maintained. By implementing these strategies in focusing upon the agenda that it has set for itself, EDF can continue to grow as fast as it has recently. It should continue to grow in terms of expanding its current knowledge base so that the company can keep pace with changes in environmental strategy (Kline and Saunders, 2007). By expanding its knowledge base, EDF will be able to address all the value chain activities, thus enhancing the scope for the company to collaborate with large corporations in a wide range of projects. EDF has already set an ambitious agenda for itself as discussed in the previous section. Therefore the company will have to continue to grow its expertise in order to address the issues in the agenda. The challenge in front of the management is to tie these issues to one of three areas: compliance, competitive advantage and sustainability (Reinhardt and Vietor, 1996). Therefore the company’s staff will have to continue to grow their expertise in organizational innovations tied to environmental concerns. EDF has the platform of expertise and experience based upon which it can continue to grow as fast as it has recently. Since the company specializes in offering concrete incentives to encourage good environmental practice, it will have to continue to enhance its expertise in how to address environmental externalities that are affected by organizational operations. Therefore the company should continue to grow as fast as it has recently, especially since the management of business performance is undergoing a similarly fast pace of change. Question 5 The basis of third wave environmentalism is incorporating economic analysis into addressing environmental problems. This is the area that EDF specializes in and from its collaborative project with McDonald’s, it is apparent that this framework is effective in addressing environmental issues. The management of business operations is changing in a variety of ways. However they are also impacting upon the environment negatively. Therefore it is imperative that the behavior of management should change in order to reflect environmental concerns. However the managements of businesses also have to preserve their imperatives for maximizing profitability. Third wave environmentalism provides the best framework for resolving this conflict. As EDF’s work illustrates, market-based incentives to address environmental issues align the strategic imperatives of businesses to environmental considerations. The new environmentalism is based upon finding innovative solutions to address environmental dilemmas. This is an effective approach since it aligns the strategic imperatives of businesses to environmental activism. In this manner third wave environmentalism provides a framework in which it is in the self-interest of economic actors to address environmental issues. By using market-oriented incentives, EDF and other environmental groups can link business performance to improving the environment. This is the basis of third wave environmentalism. It provides an effective framework for businesses to incorporate environmental issues into the definition of business performance. As a result this framework effectively addresses the conflict between business performance and environmentalism. Third wave environmentalism is a new kind of environmentalism that encourages scientific analysis of environmental problems and addressing them in a manner that maximizes business performance. Word count: 2000. References Hill, C. and Gareth J., 2007. Strategic management theory: an integrated approach. 3rd ed. New York: McGraw Hill/Irwin. Jeston, J. and Nelis, J., 2008. Business process management: practical guidelines to successful implementations. 2nd ed. New York: McGraw Hill/Irwin. Kline, P. and Saunders, B., 2007. Ten steps to a learning organization. 2nd ed. New York: South western college pub. Reinhardt, F. and Vietor, R., 1996. Business management and the natural environment. South-Western College Publishing, Ohio, pp. 1.53-1.69. Read More